Brazil’s Trade Surplus Jumps to US$ 14 Billion

Latin American stocks moved in various directions, with Brazil feeling some pressure, while Mexico and Argentina moved higher on the session.

Mexican stocks followed U.S. markets higher and reached their highest level in more than two months. Meanwhile, Argentine volume remained light ahead of the government’s highly anticipated debt restructuring.


Brazil’s benchmark Bovespa Index receded 307.52 points, or 1.25%, while Mexico’s benchmark Bolsa Index advanced 146.12 points, or 1.13 %. Argentina’s Merval Index rose 14.55 points, or 1.01%.


Brazilian shares continued their negative pattern from last week. Still, a domestic central bank survey indicated that economists expect domestic inflation to stabilize.


According to the weekly poll, economists expect the consumer price index, or the IPCA, to rise 6.38% in 2005, compared to the 6.39% advance predicted in last week’s reading.


Also, the Trade and Development Ministry reported that Brazil posted a trade surplus of US$ 943 million in the third week of May, boosting the trade surplus to US$ 14.53 billion this year.


Turning to corporate reports, state-run oil firm Petrobras said that it will sign a memorandum of understanding with the Japan Bank for International Cooperation and Japanese trading firms. The agreement will help financially support several of Petrobras’ projects in Brazil.


Mexican issues were higher, as strength in the market of its key trading partner, the U.S., boosted domestic shares. The Finance Ministry reported that the country’s trade deficit widened to a larger-than-expected US$ 629 million in April from US$ 181 million in March.


Still, the most recent result was down from the US$ 710 million deficit posted in April 2004.  An increase in commerce after the Easter holidays was credited for the wider April deficit.


In corporate reports, broadcaster Grupo Televisa advanced, after the firm priced US$ 200 million of debt, after reopening a US$ 400 million 20-year bond issue.


Cement maker Cemex SA is set to sell its minority stake in Indonesia’s PT Semen Gresik, according to Indonesia’s Coordinating Minister for Economic Affairs.


Argentine issues advanced amid a stronger-than-expected surplus reading last month. Still, trading continues to be subdued ahead of the government’s planned US$ 103 billion debt restructuring.


Argentina’s primary fiscal surplus for April arrived at 2.244 billion pesos and totaled 6.482 billion pesos for the first four months of 2005, according to an Economy Ministry report.


In other economic reports, Indec reported final figures for April’s industrial production, showing a 10.2% leap last month, compared to the corresponding period a year earlier. April’s figure slipped 0.4% from March.


Thomson Financial Corporate Group
www.thomsonfinancial.com


PRNewswire

Tags:

You May Also Like

Lack of Skills Makes 60% of Brazilians Unemployable

Brazil’s Ministry of Labor says that one of the country’s serious development bottlenecks is ...

No Visas Required as Brazil and South America Create Friendly Community

The twelve countries which make up the South American Community of Nations signed Friday ...

Brazil Uses Stem Cells to Treat Chagas’ Patients

In Brazil, stem cells are being used to treat Chagas’ disease in its chronic ...

Digital TV: Japan Sweetens Deal and Brazil Seems Poised to Go Japanese

The Brazilian Minister of Communications, Hélio Costa, rebuffed criticism that he was "messing up" ...

Despite Red Tape and High Taxes Brazil Makes the Case to Draw Foreign Investors

Brazil should attract more foreign investment in coming years. The statement was made by the ...

Hungry for Brazilian Food? If You’re in Tripoli You’re in Luck

In Tripoli, capital of Libya, in the restaurants owned by Fakher Shames, you can ...

Brazil’s Daniela Mercury Raises Emotions and the Audience in Philly

Daniela Mercury played in Philadelphia Saturday night, and at least one patron was furious ...

Brazil Blames Airbus Manufacturer for Brazil’s Air Tragedy

Brazil's Air Force blamed Airbus for the recent tragedy in the São Paulo Congonhas ...

Not So Modest Plan: To Make Brazil World’s Largest Organic Food Producer

Brazil will be the theme of the world’s largest natural food fair, the BioFach, ...

Brazilian Industry Urges Bilateral Agreements with US and EU

Due to the impasse in the Doha Rounds of trade negotiations, bilateral and regional ...